I would recommend holding off until the spring, as the activity does die down as we head into the Holiday season. If no realtor is willing to list your property for over $120K, then you should probably heed their advice, as long as they've shown you comparable sales for your home, which do not support a higher list price.
Keller Williams Landmark II
First of all, you should be getting recent sold comps from an agent in Baldwin. That is the most important market information you need to know where to realistically price your home. Whatever that number is, whether it's $135,000 or 120,000, that's where your home will sell in the current market. Setting a price based on what you need to get doesn't help you sell it. If that number is not a number you can live with, then you will need to hold off for a few years. The market is starting to turn around in the major Twin Cities metro area, but will take some time to catch up in more rural communities. If you have not seen recent sold comps for Baldwin, find a good agent to help you.
There are a lot of people that want to move but they paid too much for their houses. It sounds like you may be one of those people. If you can save up the difference, you can move. For example, let's say your house can sell for only 100K but you need 135K to pay off the loan. If you save up 35K, you can bring it to closing with you to pay off the bank, then you can move. Good Luck
"wasn't even willing to list it for over $120,000."
Although you did not share this information, I am reasonably confident you has zero offers and few, if any, showings. The showing that likely occurred may have been other home sellers surveying the competition. Assuming there are no 'deal killer' issues with your home, this is the profile of an overpriced home.
You may very well find an agent to list at #135,000. And when your homes does not sell, the value may have declined to $110,000 and you will price at that time $125,000.
An over priced home is like the defeated warrior....they have no friends.
The well priced home is the victorious warrior and everyone wants to know him better.
Selling a home today means you are in a beauty pageant or a price war. If you get stuck in between....you will lose.